'Ranga' scripts powerful plan for first 100 days

In a major policy initiative, the power
ministry has fixed a time-limit of 100 days on the proposal of
securitisation of dues of the central public sector companies to
clean up the books of State Electricity Boards or SEBs.

Securitisation of dues of PSUs

A Cabinet note to this effect would be circulated soon. It
proposes to convert Rs 120 billion of the outstanding dues of
around Rs 290 billion in seven-year bonds, Power Minister P R
Kumaramangalam and his deputy Jayawantiben Mehta said
in New Delhi today.

Explaining the modalities of securitisation of dues, Kumaramangalam said an amount of Rs 120 billion would be
converted into bonds, to be issued to the government at a coupon
rate of 10.5 per cent. This step would help the SEBs to convert
their working capital dues into debts and also in planning to clear
their dues. The interest liability would also come down
substantially, he added.

The ministerial duo released the agenda for the first 100 days of new
government which assumed office on Wednesday.

Legislation on energy conservation

Kumaramangalam said his ministry also proposes to take various
other initiatives including introducing a legislation on energy
conservation, envisaging statutory powers to state and central
governments for promoting and enforcing measures.

Bureau of Energy Efficiency

The government
also proposes to set up a Bureau of Energy Efficiency within 100
days .

On the issue of Y2K compliance, the power ministry has fixed a
deadline of October 31 and independent audits would be conducted
during November-December to confirm the compliance before the end of
year, Kumaramangalam said.

Bonanza for the North-east

The ministry also proposes to work out assistance programme
for an affordable transmission tariff for the north eastern region,
keeping in view their economic position and urgent need for setting
up infrastructural and developmental activities.

He said the government also proposes to set up a Special
Purpose Vehicle for survey, investigations and implementation of
Dehang ( 13,400 mw) and Subansiri ( 7,300 mw) multipurpose projects
in Arunachal Pradesh alongwith commencement of survey and
investigations of both these projects.

Demand-supply mismatch

The minister said that the government
proposes to meet the entire demand of electricity by 2010 against
the present shortfall of around 12,000 megawatts. To meet the demand,
the government proposes to create an additional capacity in the next
ten years.

Kumaramangalam said that the government also proposes to work
out indentification mechanism between transmission and generation
projects to narrow down the mismatch and effect penalty clauses for
slow moving projects.

The minister also announced that 1440 mw of power will be added
to the existing capacity within next 100 days to improve the power
scene in the country.

Kumaramangalam said the government has
fixed a deadline of December 31 for the financial closure of 12 fast
track private projects. Action would be taken against the
defaulters, he said.